Cheapest and Best Car Insurance Companies in Manhattan, NY (2023)

In Manhattan, Progressive and Kemper offer the most affordable minimum liability car insurance, while American Family and Kemper have the lowest rates for full coverage. For young drivers, Progressive and Kemper again provide the best rates. Erie Insurance stands out for its robust coverage options and customer satisfaction.

Despite New York's high average cost of car insurance, you can still find ways to save. Discounts for safe driving, good academic performance and military service are available from various providers.

While location plays a significant role in determining your premium, strategic choices like driving the cheapest cars to insure and taking advantage of discounts can help lower your costs.

The cheapest car insurance companies for minimum coverage are:

• Progressive: $1,111 per year, $93 per month
• Kemper: $1,217 per year, $101 per month

Car insurance in New York tends to be pricier, but getting liability-only coverage can help you meet state minimum car insurance requirements while lowering your premium.

Progressive and Kemper offer discounts for safe driving, safety features and good academic performance. Kemper adds extra value with diminishing deductibles for safe drivers and special rates for active and retired military members. View the table below to see premiums for ages 30 to 59 at different coverage levels.

The cheapest car insurance companies for a full coverage policy are:

• American Family: $990 per year, $83 per month
• Kemper: $1,119 per year, $93 per month

Suppose you're considering going for a liability-only car insurance policy. In that case, you should think again, especially if you park on the street, drive often in bad weather, or have a high-value car. Liability-only might be cheaper, but it won't cover damages to your car, which could cost you more in the long run.

American Family has loyalty, early bird and safe driving discounts to make a full-coverage policy more budget-friendly. If you've got a luxury car, you can also get original equipment manufacturer (OEM) coverage, ensuring repairs use top-notch parts.

Kemper also helps you save with their pay-in-full, defensive driving and multi-car discounts. Plus, their Kemper Prime Auto Enhanced package includes personal property protection and a waived deductible if your parked car gets damaged, offering a more rounded financial cushion for your vehicle.

The cheapest car insurance companies for drivers with bad driving records are:

• With a speeding ticket: American Family ($1,194 per year, $100 per month)
• With an accident: Progressive ($1,232 per year, $103 per month)
• With a DUI: Progressive ($1,295 per year, $108 per month)

Progressive’s Snapshot program can help high-risk drivers potentially save $231 each year on insurance.

• If you're a high-risk driver, American Family can file your SR-22 insurance for DUIs or if your state requires proof of coverage. With a low National Association of Insurance Commissioners (NAIC) complaint index of 0.57, they're reliable for claims. Plus, their usage-based program can lower your rates for good driving, much like Progressive's program.

Young drivers can find affordable rates with:

• Progressive: $3,797 per year, $316 per month
• Kemper: $4,099 per year, $342 per month

These are rates for a full coverage policy for young drivers aged 22-29.

If you're a 21-year-old driver in New York, expect to pay significantly more for car insurance than the national average of $1,958.

Rates can be more than double what you'd pay in states like Alabama. Despite the high costs, college students in New York can find ways to lower their premiums, such as maintaining good grades and taking approved defensive driving courses.

With near-perfect scores, Erie and Chubb offer the best overall car insurance in Manhattan:

• Erie: MoneyGeek score of 99 out of 100 ($2,022 per year, $169 per month)
• Chubb: MoneyGeek score of 99 out of 100 ($3,097 per year, $258 per month)

The cheapest car insurance may save you money upfront but could fall short in customer service and claims support. The best providers offer comprehensive coverage and excellent service, giving you peace of mind. If quality matters to you, "best" may outweigh "cheapest."

The table below shows average rates for a full coverage policy for a 40-year-old male driver.

The car insurance company with the best car insurance companies are:

• Erie: MoneyGeek score of 99 out of 100 ($2,022 per year, $169 per month)
• Chubb: MoneyGeek score of 99 out of 100 ($3,097 per year, $258 per month)

While Chubb may have a slight edge in customer satisfaction scores, we recommend Erie Insurance for its consistently high rankings in national surveys. According to J.D. Power, Erie ranks as one of the top auto insurers in the country.

Additionally, Erie outperforms Chubb in the NAIC complaint index, scoring a favorable 0.57 compared to Chubb's 0.73. Both are above average, but Erie's lower complaint index and high J.D. Power ranking make it a more compelling choice.

The following table shows average full-coverage rates for a 40-year-old male driver.

The average cost of car insurance in New York is $2,043. In contrast, drivers in Idaho pay just $661 annually for the same level of coverage. That's a staggering 207% difference in cost.

The location where you live plays a crucial role in determining your car insurance rates for several reasons:

So, your geographic location isn't just a data point for insurance companies; it's a comprehensive snapshot of various risk factors they consider when determining your premium.

While you may have little control over your location, you can make strategic choices to lower your insurance costs.

Opting to drive the cheapest cars to insure can significantly reduce your premiums. Additionally, taking advantage of all available discounts and completing driving courses can further reduce your rates.

The best approach to finding cheap coverage is to start with an insurance company known for competitive rates and then stack discounts to maximize your savings.

How much car insurance you need hinges on your state's minimum car insurance requirements, your car's value, your budget and your comfort level with risk.

Sticking to your state's minimum insurance requirements could be sufficient if you're driving an older car and have the financial cushion to handle unexpected repairst. However, if you're looking for added peace of mind and it fits within your budget, you can increase your liability limits for more financial protection.

If you own a new or luxury car, consider full coverage. Collision insurance covers accident-related repairs, and comprehensive insurance handles other damages like weather or theft. Full coverage offers a safety net if you can't afford major repairs. You can also add new car replacement coverage, which replaces a totaled car with a new one of the same make and model.

Lenders usually require full coverage if you lease or finance your car.

Insurance rates in New York tend to be higher compared to other states. However, you can offset these costs by leveraging state-mandated discounts, such as those gained from completing a DMV-approved defensive driving course. Bundling home and auto insurance or paying your premiums in full can also help reduce your rates.

Whether you're wondering about the cheapest options, the legal requirements, or why rates are so high, we've got you covered. Below are frequently asked questions to guide you through the ins and outs of car insurance in Manhattan.